Development

The Institute for New Economic Thinking takes a broad view of economic research and supports it in many ways: through its main grant program, through working groups it organizes, and via conferences, panels, and other smaller gatherings of scholars across the globe.

Institute scholars normally publish their work in journals and books. While many – but far from all – of this work appears in working papers sponsored by the Institute and other leading research forums, the Institute also attempts to make its research results accessible to a wider public on its website. Below is a sampling of interviews featuring Institute scholars explaining the significance of their research in non-technical terms.

What Schumpeter and Keynes Knew but Standard Macroeconomics Has Forgotten

Many people would not think of putting Joseph Schumpeter and John Maynard Keynes in the same economic framework, but Giovanni Dosi believes the insights of both are needed to fully understand how to boost innovation in an economy. Dosi, director of the Laboratory of Economics and Management (ELM) in Italy, makes the case in this INET Interview that Schumpeterian innovation must be combined with Keynesian demand management to sustain economic growth over time.

Dosi, who also is a professor at the Sant'Anna School of Advanced Studies in Italy, is fascinated in general by the problems of coordination in systems characterized by endogenous innovation, or innovation from within the system itself. He also thinks that the biggest challenge for the economics profession is to develop microfoundations for macroeconomics. In both these overarching pursuits, both Schumpeter and Keynes provide key insights.

In INET's full interview with Raghuram Rajan, he discusses his book "Fault Lines: How Hidden Fractures Sill Threaten the World Economy;" as well as the intersection of government and the economy and China's upcoming challenges.

In part 3 of INET's interview, Raghuram Rajan says: "The left and the right have a common diagnosis of the problem: the government is captured by big business. Marx said 'Get rid of big buiness.' Stigler said 'Get rid of government.'" But in fact they need to work together, he says, and the task is to delineate the respective responsibilities. Read more

In part 2 of INET's interview, Raghuram Rajan acknowledges that "government is there to soften the rough edges of capitalism." But - despite good intentions - the government is prone to manipulation by private interests, he warns.

Lance Taylor Says the Crisis Once Again Proved the Relevance of Keynes’ Fundamental Insights

Since the financial crisis hit, interest in the economic analysis of John Maynard Keynes has revived and then faded somewhat. Many economists still have had little or no exposure to his theories and ideas.

In INET's complete interview with Erik Berglöf, he catches us up on what has been happening in Europe recently. The topics covered include how the crisis affected development and regulation of the greater Euro zone, and how countries in Asia represent both competition and new opportunities.

In part 6 of INET's interview with Erik Berglöf, he says that developing countries in Europe can learn from the successes and failures of their cohorts -- from Estonian tax advances to Georgia's fight against corruption